Sample Marketing Case Study Paper on Role of Marketing in Market Entry: Suntory

Role of Marketing in Market Entry

Question 1

By 1994, the number of companies that were engaged in beer making was around 705 for which 271 of them were making losses at that time which represented 30.78%. Due to the open door policy introduced in China, the number of companies increased to 737 while those making losses were 253. This trend was seen to have increased the levels of investment in the country in the beer sector which led to its expansion. The annual increase therefore stood at 4.5%. The production of beer increased from 14.15 million tons to 15.688 tons (10.86%). The beer demand increased steadily up to the year 1995.

Question 2

The main market segment that Shanghai Suntory decided to enter was to sell those who are price sensitive and making sure that they lower the prices and produce high quality beer. Shanghai at this point is known for production of high quality beer which has made its authenticity to be revealed in the market. With the rising competition, the company decided to go into a merger with the rival industry players in order to control both the production and sales of the beer in the China market. In so doing, the firm has increased its market share and the control of the same.

Question 3

On the account of marketing mix, the prices of beer increased between 1996 and 1997 to accentuate the high quality and also to ensure compensation for the high costs in the region. Additionally, the company used mainly the distributor outlets which it sought to expand throughout these years which helped it to be on the competitive edge in terms of sales of the same. The firm resorted to use the media marketing to boost some of its best brands across the country and with the increased technological advancements; the internet marketing was the best at this point. on the account product, the firm increased its brands of beer in order to help fit the market segment which indeed expanded its sales. Various new brands released between these years helped in ensuring that the firm was stable and had a bigger market share.